Question
ABC's bond currently sell for $1200. The par value is $1,000. The coupon rate is 15%, paid semi-annually. If the bonds have 10 years to
ABC's bond currently sell for $1200. The par value is $1,000. The coupon rate is 15%, paid semi-annually. If the bonds have 10 years to maturity, what is the yield to maturity?
Project A requires an initial investment of $7,000 at t = 0. Project A is expected to earn annual after-tax cash inflows of $1,400 at the end of each year for seven years.The project has a required return of 7%.What is the equivalent annual annuity?
ABC Company purchased a new machinery twoyears ago for $52,170. Today, it is selling this machinery for $14,436. What is the after-tax salvage value if the tax rate is 27 percent?
The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.
Six years ago, ABC Company invested $57,795 in a new machinery. The investment in net working capital was $4,751 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $23,246. Today, the book value of the machinery is $17,275. The tax rate is 24 percent. What are the terminal cash flows in Year 6?
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